Ruble rises against the dollar, oil is approaching yearly lows

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New sanctions against Russia postponed. Oil prices are approaching annual lows. Ruble rises against the dollar and the Euro. A number of U.S. congressmen have stated that it is unlikely to impose new sanctions on Russia before the end of this year. Now they are busy with some other issues. This gives some respite to the domestic currency and the Russian financial market in General.
Meanwhile, the “fly in the ointment” for the domestic market is the decline of oil prices. The day before they fell to the lowest level since March. If the drop continues at the same pace that we saw in the last days, very soon we will update the annual minima on the basic grades of oil.
On this background the dollar on the Moscow exchange is held in the mark of 67 rubles and 90 kopecks, the Euro traded at 76 rubles and 60 kopecks. The MICEX index dipped to 2365 points, and quotes of Brent oil traded in area of $ 65 per barrel. Bitcoins according to the website CoinMarketCap is kept slightly below 6400 dollars.
Quite cheerfully ruble rises against dollar and Euro amid withdrawal concerns about sanctions. However, to rejoice too early. Until the end of the year is still very much subject to change. Including could significantly change the situation on the oil market. Where now the prices are close to threatening levels for the Russian budget.
If the price of a barrel of Brent 80 – $ 85 we were surprised by the weakness of the ruble, when the current price of oil “wood” be more incentives to weaken. It is likely that now we are waiting for some correction is likely to return to the district 66 – 67 rubles per dollar. To fall below $ 66 in the medium term will be difficult, and the year we finish above this level. In case of occurrence of negative scenarios we can once again begin to consider the option of lifting up to 70 rubles per dollar.
Gleb Zadoya,
The head of the analytical Department of the company,